Gas2Grid (ASX: GGX) can now proceed with development of its Malolos-1 oil discovery in Service Contract 44 onshore Cebu, Philippines, after receiving approval from regulators.
The Philippine Department of Energy has formally recognised it as an oil discovery and approved an extension to SC44 in order to conduct oil production.
Forward plans involve longer period oil production testing to establish commerciality.
In order to complete a longer term testing a beam pump and oil storage will be required onsite. Longer term testing will also be needed to certify and convert some of the Contingent Resource of oil in place into Proven, Probable and Possible oil reserves.
Malolos-1 has a best estimate Contingent in-place resource of 12 million barrels of oil.
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